Power margins tighter – DMR

The margins on the power system are tighter this morning, according to npower’s daily market report.

The peak is forecast at just 5.5GW, with wind generation “virtually non-existent” at 250MW and is not expected to increase to any great extent in the next couple of days.

This has led to a pick-up in gas-fired generation to cover the shortfall with nuclear generation also hampered by a number of planned outages with total generation down at just 6GW.

However both the French and Dutch interconnectors are today importing to the UK at full capacity.

The gas system opened “a touch lower following the rally seen at the close of play yesterday while prompt power contracts have opened in strength due to tighter power margins”, said Gemma Bruce from the Optimisation Desk.

Demand continues to be supported above seasonal normal levels as gas-fired generation ramps up to 50% of the power stack.

Ms Bruce added: “This coupled with lower Norwegian flows with Langeled are down at 63mcm. South Hook nominations down 14mcm from the levels we saw at the end of yesterday has seen the gas system struggling this morning. As a result prompt gas prices have gained slightly but the rest of the curve is trading lower, taking their lead from the pound strength.”